Travel Industry, News and Analytics

Travel Industry is Expected to Grow in China in 2021

Despite the restrictions caused by the pandemic, the travel industry in China looks promising and might grow in 2021. The lunar New Year period, which is traditionally the time when the Chinese travel, wasn’t very active this year but taking into consideration the desire of Chinese consumers to travel and their shopper behavior, it is safe to say that this year has a high chance of the long-awaited recovery of the travel retail sector.

Not only hotels in Beijing or Shanghai will benefit from this but also many destinations around the world as the Chinese like to travel. In 2021, there has been a spike in international departures of more than 200% in China. The total number of departures reached 30 million. Of course, this is far away from the pre-covid levels – the country is expected to reach them by 2023. The forecast looks very promising: 88 million international departures (+108%) in 2022 and another +44% in 2023. The forecast is positive despite the restrictions during the Chinese New Year period caused by the outbreak of the disease in the Hebei and Heilongjiang provinces.

Improved testing and hygiene measures together with the vaccination are good signs for the industry. The pandemic has changed the preferences of Chinese travelers. Today, they put extra attention to the safety of their travel and are prone to demanding higher hygiene. Income is one more thing that greatly affects the decision-making process when it comes to a new holiday. 53% of Chinese travelers say that the pandemic had a negative impact on their income. This is a litter lower than the worldwide average result of 55%.

When asked about the time when they want to travel, more than 30% of Chinese replied that they want to wait around 6 months after the restrictions were lifted. Travelers are very positive about the vaccine – 97% of respondents want to get vaccinated as soon as possible, and 39% are ready to travel again once they receive the vaccine.

It looks like the shopping preferences of Chinese travelers have changed as well because of the pandemic. Known as passionate shoppers and fans of Duty-Free stores (80% of Chinese travelers visit them), travelers want to spend less time at the airport today. 27% want to spend less time shopping, and over 50% want to stay somewhere away from the crowd while waiting for their flight. Digital technology such as web versions of Duty-Free shops with detailed information about items in them could potentially solve the problem.

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